The payment retires the TL31 bond, effectively an institutional IOU listed on the JSE and funded by local investors, which has reached the end of its term.
The move comes on the back of a year in which Telkom made significant progress paying down what it owes.
Group chief executive Serame Taukobong says repayment of interest-bearing debt and an improved cash position led to a R1.1 billion reduction in net debt, when cash holdings are offset against debt, which was R6.4 billion at the end of March.
Telkom recently reported revenue up 1.4% to R44.4 billion, driven by data revenue growth of 7.6%. Operating profit – measured as earnings before interest, taxes, depreciation and amortisation (EBITDA) – rose 5.8% to R12.48 billion, with the margin expanding to 28.1%, above the group’s own target range of 25% to 27%.
Headline earnings per share rose 21.5% to 708.5 cents, while basic earnings per share increased 5.5% to 719.5 cents, both of which contributed towards Telkom paying down what it owed.
